Finance Secretary Benjamin E. Diokno said the economic managers are standing behind President Marcos' decision to impose rice price ceilings, emphasizing it is a crucial step to fight non-competitive practices and promote a fair market environment.

Diokno said the economic team recognized the crucial role of Executive Order No. 39, which set price ceilings on regular and well-milled rice, in providing necessary relief to Filipino consumers struggling with the soaring rice prices.

The president’s economic managers include Diokno, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, and Budget Secretary Amenah F. Panagamdaman.

“We agree with the President that implementing a price cap on rice is the most prudent course of action at the moment to achieve two critical objectives: stabilizing rice prices and extending immediate support to our fellow countrymen," Diokno said in a statement Monday, Sept. 11.

Under EO No. 39, the mandated price of regular milled rice is P41 per kilogram while well-milled rice is at P45 per kilogram.

"Executive Order No. 39 was issued by the President as the chief executive and the concurrent secretary of the Department of Agriculture (DA). EO 39 serves as a lifeline, extending much-needed relief to Filipinos grappling with the high rice prices,” the finance chief said.

Diokno's statement came after he admitted that the economic team was not consulted by Malacañang before issuing EO 39.

The DOF chief, however, noted that the executiv order can be proven effective only in the near term, and should not persist for an extended period.

The president has directed the economic team to implement measures that will mitigate the negative impact of the price controls on rice retailers and farmers, Diokno said.

The Department of Finance (DOF) has proposed a comprehensive approach, including the temporary reduction of the 35 percent rice import tariff rates, both ASEAN and Most Favored Nation (MFN) rates, to zero percent or a maximum of 10 percent.

Additionally, Diokno clarified the importance of encouraging timely rice imports by the private sector. 

The full implementation of the Super Green Lane, which allows for advance processing and clearance of shipments for the country's top-qualified importers, has also been proposed to expedite rice imports.

“We are advocating cooperation with tollway concessionaires and operators to temporarily exempt trucks catering to agricultural goods from increased toll fees, ensuring the efficient transportation of rice,” Diokno said. 

The government also aims to curb non-competitive behavior in the rice industry by actively pursuing cases of hoarding, smuggling, and economic sabotage.

Diokno said that there should also be strict monitoring of the prices of imported rice throughout the logistics chain.

The President has directed the DA and the Department of Trade and Industry (DTI) to monitor rice prices by making rounds in markets and storage facilities.

The Inter-agency Committee on Inflation and Market Outlook (IAC-IMO), which the DOF co-chairs, will continue to monitor developments in food and non-food inflation in order to effectively identify the measures needed to mitigate inflationary pressures.